With savings accounts and term deposits still providing very low interest rates, the share market arguably remains the best place to earn a passive income.
But which ASX dividend shares should you consider buying? Two to consider are listed below:
Bapcor Ltd (ASX: BAP)
The first ASX dividend share to look at is Bapcor. It is Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions.
Bapcor appears well-placed for growth over the coming years thanks to its strong market position, growing store footprint, and strong demand for used cars. And while the rise of electric cars poses a long term risk, the company appears to be addressing this now following the unceremonious exit of its Chief Executive Officer.
That exit has caused a significant pullback in the Bapcor share price, which could be a buying opportunity for income investors according to the team at Credit Suisse.
Earlier this month the broker put an outperform rating and $7.90 price target on the company's shares. Credit Suisse is also forecasting fully franked dividends of 23 cents in FY 2022 and 24.6 cents in FY 2023.
Based on the current Bapcor share price of $6.71, this will mean yields of 3.4% and 3.7%, respectively.
Commonwealth Bank of Australia (ASX: CBA)
Another ASX dividend share to look at is Commonwealth Bank. Like Bapcor, this banking giant's shares have pulled back significantly recently. This has been driven by the release of a disappointing first quarter update which revealed margin pressure from intense competition for home loans.
The team at Bell Potter appear to see this as a buying opportunity. In response to the update, its analysts have retained their buy rating but trimmed their price target to $111.00.
As for dividends, Bell Potter is forecasting fully franked dividends per share of $3.94 in FY 2022 and $4.15 in FY 2023. Based on the current CBA share price of $99.12, this will mean yields of 4% and 4.2%, respectively.
